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					                                                                                      Exhibit 1
                                                                                        Page 1

Summary of Model Assumptions

(1) Payout Patterns were generated based upon an exponential settlement lag distribution with mean lags to settlement of one year, five years,
    and ten years for LOB 1-3, respectively. Thus, the payout patterns for LOB 1-3 can be characterized as Fast, Average, and Slow, respectively.
   Payments are assumed to be made in the middle of each year.

(2) Interest is credited on supporting surplus using risk free rates for bonds of duration equal to the average payment lag in each line of business.
   In this example, interest rates of 3%, 4% and 5% for LOB 1-3, respectively, were assumed. These are the same rates that are used to calculate
   Net Present Value (NPV) reserves, interest on supporting surplus, and the NPV Reserves Capital component of Required Rating Agency Capital.

(3) For simplicity, interest rates and payment patterns are assumed to be deterministic.

(4) Profitability measures are computed before taxes, overhead, and returns on capital excess the rating agency required capital.


Example                                     Key Assumptions                                                           Purpose of Example
   1    Write equal amounts of premium in three lines of business.                                Base example with no reinsurance.
        Pricing is accurate, as the Plan Loss Ratios equal the true ELR's.
        The ELR's are equal to 80% for all three lines. No reinsurance is purchased.
        Aggregate losses are assumed to be modeled accurately by lognormal
        distributions with coefficients of variation of 80%, 20% and 40% for LOB 1-3,
        respectively. The correlation between LOB 1 and LOB 2 losses is 50%.

    2     Same assumptions as in Exhibit 2, except a 30% xs 90% Loss Ratio Stop Loss              Test impact of stop loss reinsurance program for LOB 1.
          reinsurance program is purchased for LOB 1 at a 10% rate.

    3     Same assumptions as in Exhibit 2, except a 50% Quota Share is                           Test impact of quota share reinsurance program for LOB 1.
          purchased for LOB 1 with commission just covering variable costs.
                                                                                    Exhibit 1
                                                                                      Page 2

Model Summaries

(1) For both models, capital needed to support the portfolio risk is calculated as 150% of Excess Tail Value at Risk (XTVAR).
   That is, the Company wants 50% more capital than needed to support 1 in 50 year or worse deviations from plan.
   Capital needed to support the portfolio risk is allocated to line of business based upon Co-Excess Tail Values at Risk (Co-XTVAR).

(2) Returns on Risk Adjusted Capital Model (RORAC):
  Expected Total Underwriting Return is computed by adding the mean NPV of interest on reserves from the simulation, interest on allocated
  capital, and expected underwriting return (profit and overhead). RORAC is computed as the ratio of Expected Total Underwriting Return to
  allocated risk capital, and represents the expected return for both benign and potentially consumptive usage of capital.

(3) Risk Returns on Capital Model (RROC):
  (a) Risk Returns on Capital (RROC) may be thought of as a composite of the EVA and RORAC approaches to measuring profitability.
  The Mean Rental Cost of Rating Agency Capital (an EVA Concept) is subtracted as a cost before applying RORAC concepts
  to compute the return on allocated capital for exposing capital to potential loss.

  (b) Required Rating Agency Capital is computed based upon rating agency premium and reserves capital charge factors assumed appropriate
  for the Company's desired rating. Somewhat smaller factors were selected for the reinsurance line (LOB 4) under the assumption that the
  Company would not receive full credit for ceded premium and reserves because a charge for potential uncollectibility would be applied.
  Capital needed to support reserves for a calendar year is the product of the reserves factors and the previous year-end reserves.
  Capital needed to support reserves must be calculated for all future calendar years until reserves run off.
  Required capital to support reserves is the NPV of these capital amounts.

  (c) The Mean Rental Cost of Rating Agency Capital is calculated by multiplying the Mean Rating Agency Capital from the simulation by the
   selected Rental Cost Percentage, an opportunity cost of capacity.

  (d) Expected Underwriting Return is computed by adding the mean NPV of interest on reserves and interest on mean rating agency capital to
    expected underwriting return (profit and overhead). The Expected Underwriting Return After Rental Cost of Capital is computed by subtracting
   the Mean Rental Cost of Rating Agency Capital. As for RORAC, risk capital is 150% of XTVAR. Capital is allocated to line of business based
  upon Co-XTVAR. RROC is computed as the ratio of the Expected Underwriting Return After Rental Cost of Capital to allocated risk capital.
  RROC represents the expected return for exposing capital to risk of loss, as the cost of benign rental of capital has already been reflected.
                                                                                   Exhibit 2

                                                             Model Comparisons for All Lines Combined
                     Returns on Risk Adjusted Capital (RORAC)                                   Risk Returns on Capital After Rental Cost of Capital (RROC)
                                                                 Cost of Capital                                                               Cost of Capital
     Example           Gross *        Net         Difference       Released                         Gross *          Net         Difference      Released
        1              17.50%        17.50%                                                          9.95%           9.95%
        2              17.50%        17.88%         0.4%             12.6%                           9.94%          10.05%         0.1%             8.6%
        3              17.55%        25.74%         8.2%             5.6%                            9.97%          15.36%         5.4%             2.1%

                                                 Model Comparisons LOB 1 and LOB 4 (Reinsurance) Combined
                     Returns on Risk Adjusted Capital (RORAC)                                   Risk Returns on Capital After Rental Cost of Capital (RROC)
     Example           Gross *        Net         Difference                                        Gross *          Net         Difference
        1              5.84%         5.84%                                                           1.80%          1.80%
        2              5.85%         5.21%          -0.6%                                            1.81%          1.17%          -0.6%
        3              5.86%         6.44%           0.6%                                            1.82%          2.00%           0.2%

                                                                      Model Comparisons LOB 2
                     Returns on Risk Adjusted Capital (RORAC)                                   Risk Returns on Capital After Rental Cost of Capital (RROC)
     Example           Gross *        Net         Difference                                        Gross *          Net         Difference
        1              61.41%        61.41%                                                          37.52%         37.52%
        2              62.09%        62.54%         0.4%                                             37.96%         38.25%         0.3%
        3              63.45%        63.83%         0.4%                                             38.85%         39.10%         0.3%

                                                                      Model Comparisons LOB 3
                     Returns on Risk Adjusted Capital (RORAC)                                   Risk Returns on Capital After Rental Cost of Capital (RROC)
     Example           Gross *        Net         Difference                                        Gross *          Net         Difference
        1             131.06%        131.06%                                                         93.60%         93.60%
        2             122.28%        112.67%         -9.6%                                           87.09%         79.95%         -7.1%
        3             114.39%        50.28%         -64.1%                                           81.22%         33.62%        -47.6%

Stop Loss Example 2: Comparison of Capital Requirements                                         Quota Share Example 3: Comparison of Capital Requirements
                                     Gross                       Net Combining        Net                                         Gross                           Net Combining       Net
       Line            Gross *       Weight          Net          Lines 1 and 4      Weight           Line           Gross        Weight            Net            Lines 1 and 4     Weight
         1              4,919,918       85.90%      4,892,514          4,468,187       84.24%           1            4,886,073       85.59%          4,069,551           2,034,775     59.99%
        2                453,766         7.92%        450,304            450,304        8.49%          2               443,376        7.77%            440,592             440,592     12.99%
        3                353,859         6.18%        385,446            385,446        7.27%          3               379,403        6.65%            916,596             916,596     27.02%
        4                                            (424,327)                                         4                                            (2,034,776)
                        5,727,543      100.00%      5,303,937          5,303,937      100.00%                        5,708,852       100.00%         3,391,963           3,391,963    100.00%
Average RORAC:             17.50%                      17.88%                                   Average RORAC:          17.55%                          25.74%
Average RROC:               9.94%                      10.05%                                   Average RROC:            9.97%                          15.36%

* Note that Gross simulated returns differ somewhat between Examples for lines allocated a small share of the total capital due to differences in simulation results.
                                                                                                                     Exhibit 3
                                                                                                                      Page 1
Quota Share Reinsurance Example Comparing Returns on Risk Adjusted Capital with Returns on Capital After Rental Cost of Capital

                                                                                                                      Fast Pay   Average Pay      Slow Pay    Reinsurance
1) Loss Generator                                                                                                      LOB 1       LOB 2           LOB 3        LOB 4          NET TOTAL
1A) True Expected Loss: Copy and Paste-Special from LOB 4 of (3H).                                                     1,000,000    1,000,000       1,000,000     (500,000)        2,500,000
1B) Coefficient of Variation of Assumed Lognormal Loss Distribution                                                        80.0%        20.0%           40.0%
1C) Standard Deviation                                                                                                   800,000      200,000         400,000
1D) Profit and Overhead Margin (includes Brokerage on Reinsurance)                                                           9.0%         8.0%          7.0%          9.0%              7.8%
1E) Variable Expense Ratio                                                                                                  11.0%        12.0%         13.0%         11.0%             12.2%
1F) Plan Premium                                                                                                        1,250,000    1,250,000     1,250,000      (625,000)        3,125,000
1G) Expected Loss Ratio = (1A)/(1F)                                                                                         80.0%        80.0%         80.0%         80.0%             80.0%
1H) Expected Underwriting Return (Profit & Overhead)                                                                      112,500      100,000        87,500       (56,250)          243,750
1I) Plan Loss Ratio                                                                                                         80.0%        80.0%         80.0%         80.0%             80.0%
1J) Plan Expected Loss                                                                                                  1,000,000    1,000,000     1,000,000      (500,000)        2,500,000
1K) Pricing Error = ((1J)-(1A))/(1A)                                                                                         0.0%         0.0%          0.0%          0.0%              0.0%

2) Capital Usage Calculation                                                                                           LOB 1         LOB 2         LOB 3         LOB 4         NET TOTAL
2A) Required Capital Charge on Premium                                                                                     40.0%         40.0%         40.0%         35.0%           41.0%
2B) Required Capital Charge on Reserves                                                                                    25.0%         25.0%         25.0%         20.0%           25.2%
2C) Rental Fee                                                                                                             10.0%
2D) Required Premium Capital =(1F)*(2A)                                                                                  500,000       500,000       500,000      (218,750)        1,281,250
2E) Simulated Required NPV Reserves Capital = (2B)*(NPV Future Reserves)                                                 229,011     1,022,318     1,637,097       (91,604)        2,796,821
2F) Simulated Total Required Rating Agency Capital = (2D)+(2E)                                                           729,011     1,522,318     2,137,097      (310,354)        4,078,071

3) Annual Simulation                                                                                                   LOB 1         LOB 2         LOB 3         LOB 4         NET TOTAL
3A) Simulated Losses                                                                                                    1,000,000    1,000,000      1,000,000      (500,000)        2,500,000
3B) Deviations From Plan = (1J)-(3A)                                                                                          -            -              -             -                 -
3C) Deviation from Plan at 2nd Percentile: Copy and Paste-Special from (3K), re-run simulation to calculate XTVAR.     (2,310,809)    (472,747)    (1,048,430)    1,155,288        (1,679,627)
3D) Deviation from Plan when Exceed 1 in 50 Year Result                                                                       -            -              -               -                 -
3E) Flag to Count Number of Simulations in Excess of 1 in 50 Year Result                                                      -            -              -             -                 -
3F) Contribution to Gross 1 in 50 Year Result                                                                                 -            -              -
3G) Contribution to Net 1 in 50 Year Result                                                                                   -            -              -            -                 -

Loss Simulation Statistics                                                                                                                Number of Simulations:                    100,000
                                                                                                                       LOB 1         LOB 2         LOB 3         LOB 4         NET TOTAL
3H) Expected Loss                                                                                                       1,000,009    1,000,003       999,998      (500,005)        2,500,006
3I) Standard Deviation                                                                                                    800,103      200,028       399,974       400,052           657,760
3J) Coefficient of Variation                                                                                                80.0%        20.0%         40.0%        -80.0%             26.3%
3K) Percentiles of Deviations from Plan (Negatives are Values at Risk)
                    0.1 Percentile (1 in 1000)                                                                         (5,870,875)    (808,528)    (2,056,781)   2,928,441        (3,538,483)
                    1st Percentile (1 in 100)                                                                          (3,010,960)    (554,496)    (1,275,329)   1,505,136        (2,063,235)
                    2nd Percentile (1 in 50)                                                                           (2,310,938)    (472,759)    (1,048,428)   1,155,244        (1,692,567)
                    5th Percentile (1 in 20)                                                                           (1,483,359)    (358,194)      (749,783)     741,605         (1,210,214)
                    10.0 Percentile (1 in 10)                                                                            (923,290)    (263,894)      (521,248)     461,604          (837,389)
                    50th Percentile (1 in 2)                                                                              219,129       19,415         71,515     (109,568)           104,896
                    90th Percentile                                                                                       682,957      239,216        433,300     (341,484)           717,829
                                                                                                      Exhibit 3
                                                                                                       Page 2

Quota Share Reinsurance Example Comparing Returns on Risk Adjusted Capital with Returns on Capital After Rental Cost of Capital
Key Assumptions: Write equal amounts of premium in three lines of business. The correlation between LOB 1 and LOB 2 losses is 50%.
A 50% Quota Share is purchased for LOB 1 with commission just covering variable costs.
Pricing is accurate, as the Plan Loss Ratio equals the ELR for all three lines. The ELR's are equal for all three lines.

4) Returns on Risk Adjusted Capital (RORAC)                                                                   Risk Capital Standard (Multiple K of XTVAR):
                                                                                                         LOB 1       LOB 2       LOB 3       LOB 4     NET TOTAL
4A) Plan Premium                                                                                        1,250,000    1,250,000   1,250,000    (625,000)     3,125,000
4B) Expected Underwriting Return (Profit & Overhead)                                                      112,500      100,000       87,500    (56,250)       243,750
4C) Average Deviation from Plan When Exceed 1 in 50 Year Result (XTVAR)                                (3,423,226)    (588,435) (1,381,853)  1,711,613     (2,260,925)
4D) Gross Risk Capital K% of XTVAR, Allocated to Line Based Upon Co-XTVAR's                             6,514,764      591,168     505,871
4E) Interest Rate Assumed                                                                                    3.0%         4.0%         5.0%        3.0%
4F) Interest Earned on Gross Allocated Capital = (4D)x(4E)                                                195,443       23,647       25,294
4G) Mean Net Present Value of Interest Earned on Reserves                                                  27,485      163,603     327,516     (13,742)       504,861
4H) Gross Expected Total Underwriting Return = (4B)+(4F)+(4G)                                             335,427      287,250     440,310
4I) Gross Return on Risk Adjusted Capital = GRORAC = (4H)/(4D)                                              5.15%       48.59%       87.04%
4J) Net Risk Capital K% of XTVAR, Allocated to Line Based Upon Co-XTVAR's                               5,426,069      587,457   1,222,128 (2,713,034)      4,522,619
4K) Interest Earned on Net Allocated Capital = (4E)x(4J)                                                  162,782       23,498       61,106     (81,391)      165,996
4L) Net Expected Total Underwriting Return = (4B)+(4G)+(4K)                                               302,767      287,101     476,123    (151,383)       914,607
4M) Net Return on Risk Adjusted Capital = NRORAC = (4L/(4J)                                                 5.58%       48.87%       38.96%       5.58%        20.22%
4N) Change in Return Due to Reinsurance = (4L - Net Total) - (4H - Gross Total)                          (148,380)
4O) Change in Allocated Capital = (4J - Net Total) - (4D - Gross Total)                                (3,089,184) 4P) Cost of Additional XTVAR Capital=(4N)/(4O)


5) Risk Returns on Capital (RROC) After Rental Cost of Capital                                                Risk Capital Standard (Multiple K of XTVAR):
                                                                                                         LOB 1       LOB 2       LOB 3       LOB 4     NET TOTAL
5A) Mean Rating Agency Capital = Mean of (2F)                                                             729,013    1,522,321   2,137,093    (310,355)     4,078,072
5B) Mean Rental Cost of Rating Agency Capital = (5A)*(2C)                                                  72,901      152,232     213,709     (31,036)       407,807
5C) Mean Interest Earned on Rating Agency Capital = (5A)x(4E)                                              21,870       60,893     106,855       (9,311)      180,307
5D) Expected Underwriting Return After Rental Cost of Capital=(4B)+(4G)+(5C)-(5B)                          88,954      172,264     308,161     (48,267)        521,111
5E) Gross Risk Capital K% of XTVAR, Allocated to Line Based Upon Co-XTVAR's                             6,514,764      591,168     505,871
5F) Gross Risk Return on Capital = GRROC = (5D)/(5E)                                                        1.37%       29.14%      60.92%
5G) Net Risk Capital K% of XTVAR, Allocated to Line Based Upon Co-XTVAR's                               5,426,069      587,457   1,222,128 (2,713,034)      4,522,619
5H) Net Risk Return on Capital = NRROC = (5D)/(5G)                                                          1.64%       29.32%      25.22%        1.78%         11.52%
5I) Change in Return Due to Reinsurance = (5D for LOB 4)                                                  (48,267)
5J) Change in Allocated Capital = (5G - Net Total) - (5E - Gross Total)                                (3,089,184) 5K) Cost of Additional XTVAR Capital=(5I)/(5J)
GROSS TOTAL
      3,000,000


           8.0%
         12.0%
      3,750,000
         80.0%
       300,000
         80.0%
      3,000,000
           0.0%

GROSS TOTAL
        40.0%
        25.0%

      1,500,000
      2,888,425
      4,388,425

GROSS TOTAL
      3,000,000
            -
     (2,671,871)
              -
            -
            -




GROSS TOTAL
      3,000,010
        992,642
          33.1%

     (6,282,611)
     (3,412,871)
     (2,681,451)
     (1,819,725)
     (1,204,122)
        195,304
        996,299
   200%
GROSS TOTAL
    3,750,000
      300,000
   (3,805,255)
    7,611,804

      244,383
      518,603
    1,062,987
       13.96%




          4.8%


   200%
GROSS TOTAL
    4,388,427
      438,843
      189,618
      569,379
    7,611,804
        7.48%




          1.6%

				
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